Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

156

Rate of Annual Return

Recommended Posts

Hello, I have been reading a book and I read about the Rate of Annual Return, unfortunately I couldn't find the indicator...it looks interesting.

 

Here is a quote from the book:

 

The ‘Rate of Annual Return’ Indicator

The ‘Rate of Annual Return’ (ROAR) indicator is used to calculate the annual rate of returnof a share given its current rate of climb or fall. It achieves this by calculating the annual increase in price activity and then dividing it by the current share price. The result is thenmultiplied by 100 to convert it to a percentage.

Example

• Lets assume that a share is climbing at a rate of $2 per year.

• The current price of the share is $5.

• The ‘Rate of Annual Return’ would be 0.4 ($2 divided by $5).

• Converting this to a percentage we get 0.4 x 100 = 40%.

Share this post


Link to post
Share on other sites

well it can be an indicator but I think a formula could work also, though you will constantly need to search for data to use a formula.. here is how the indicator should work ( I attach the screen shot) and also I searched on google and found some codes but I don't understand anything of coding .. here it is :

 

---------------------

 

// ROAR Version 1.0

 

Period=52;

X=Close;

LinReg=( Period * Sum( Cum( 1 ) * X,Period ) -

Sum( Cum( 1 ),Period) * Sum( X,Period) ) /

(Period * Sum(Cum( 1 )^2,Period ) -

Sum( Cum( 1 ),Period )^2 ) * Cum( 1 ) + (MA(X,Period) -

MA( Cum(1 ),Period) * (Period * Sum( Cum( 1 ) * X,Period) -

Sum( Cum( 1 ),Period ) * Sum( X,Period) ) / (Period *

Sum( Cum(1 )^2 ,Period) - Sum( Cum( 1 ),Period )^2 ) );

 

Graph1 = 200*(LinReg-Ref(LinReg,-26))/C;

 

 

// RAOR Version 2.0

 

TimeFrameSet(inWeekly);

RAOR = LinearReg((C-Ref(C,-26))/C*200,4);

 

Plot(raor,"RAOR",colorBlack,0);

 

 

---------------------

 

 

and here is another one:

 

 

// ROAR

 

Enter = 30; // Make it whatever you want

Cutoff = 20;

 

roar = int(5200*(LinRegSlope(C, 26)/LinearReg(C,26)));

roar30 = int(LinearReg(roar, 5));

 

for (nCntr=0; nCntr<BarCount; nCntr++)

{

if (roar[nCntr] >= Enter AND roar30[nCntr] >= Enter)

roar[nCntr] = roar30[nCntr];

else if (roar[nCntr] <cutoff> 0)

roar[nCntr] = 0;

else if (roar[nCntr] <= -Enter AND roar30[nCntr] <= -Enter)

roar[nCntr] = roar30[nCntr];

else if (roar[nCntr] > -Cutoff AND roar[nCntr] < 0)

roar[nCntr] = 0;

}

 

Plot(roar, "ROAR", colorBlack, 1);

Plot(Cutoff, "Cutoff", colorRed, 1);

Plot(-Cutoff, "Cuttoff", colorRed, 1);

 

 

what do you think?

 

Thank you!

Share this post


Link to post
Share on other sites
I think it could work very well in a bull market.

 

I'd love to see how it reacts in a bear / sideways market.

 

I am pretty sure it is used only for long signals due to its specifics - if you look at the chart it is "activated" when a certain value is reached - otherwise it is just standing by. Does the code makes sense to anyone who is up to date with programming? I would really love to see how it performs,

 

Thanks!:)

Share this post


Link to post
Share on other sites
I am pretty sure it is used only for long signals due to its specifics - if you look at the chart it is "activated" when a certain value is reached - otherwise it is just standing by. Does the code makes sense to anyone who is up to date with programming? I would really love to see how it performs,

 

Thanks!:)

 

Exactly. Long only = bull market.

 

Therefore, if not in bull market but if this provides long signals, will have hard time making money.

 

So once a bull market is identified, then I would consider use of something like this.

Share this post


Link to post
Share on other sites
Exactly. Long only = bull market.

 

Therefore, if not in bull market but if this provides long signals, will have hard time making money.

 

So once a bull market is identified, then I would consider use of something like this.

 

I think it might be a useful tool if anyone can code it. There are so many markets, there will be at least one bullish to trade it :) As long as it can work I don't see a problem ... :) thanks!

Share this post


Link to post
Share on other sites
I think it might be a useful tool if anyone can code it. There are so many markets, there will be at least one bullish to trade it :) As long as it can work I don't see a problem ... :) thanks!

 

Hi Guys

I think this may be what you want, it is Alan Hulls ROAR indicator from his book "Active investing"

 

'Rate of Return' lndicator

Variablec: ord(o),LD(o),Roar(0),cutoff(o),Enter(0c)o, unter(52),P eriod(26);

For Counter = 52 downto 13 Begin

' "^ --;

I"""rRegValue(clos.,io.r.rt.r,0) > linearRegValue(close,Period,t0h)e n Period

= Counter;

End;

Cord = linearRegValue(close,Period,0);

iO = Co.a - Q.618 * Cord * AvgTiueRange(52)/Average(close,5)2 ;)

If LD < LD[l] then LD = LD[l];

If Cord < LD then LD = Cord;

ii i-."rn"gV"fue(close,26,0)>O then Roar = IntPortion (5200 * linearRegslope(close,26)/

LinearRegValue(c1ose,26)e,0ls)e R oar = 0;

iin";t t= 30 and IntPortion (LinearRegValue(roar,5,0)>)= 30 then Roar = IntPortion

(LinearRegValue(roar,5), )0;

Cutoff = 20;

Enter = 30;

if Roar < Cutoff then Roar = 0;

if Roar < Enter and Roar[l] = 0 then Roar = 0;

if Roarll] = 0 and summation(volume * MedianPrice'l3) < 120000 then Roar = 0 ;

iin.-ifj > 0 and summationivolume * MedianPrice,l3) < 100000 then Roar = 0 ;

if Cord = LD then Roar=O;

plotl (Roar,"Roar", darkgray,b lack' I );

plot2 (Cutoff, "Cutoff' , black , black , I );

 

This is supposed to work on Tradestation, Which I don't have.

 

I do have a bull charts version but have not messed with it much

 

if you want to know more just google Alan Hull or alan hull.com.au

Edited by john.potter

Share this post


Link to post
Share on other sites
Hi Guys

I think this may be what you want, it is Alan Hulls ROAR indicator from his book "Active investing"

 

'Rate of Return' lndicator

Variablec: ord(o),LD(o),Roar(0),cutoff(o),Enter(0c)o, unter(52),P eriod(26);

For Counter = 52 downto 13 Begin

' "^ --;

I"""rRegValue(clos.,io.r.rt.r,0) > linearRegValue(close,Period,t0h)e n Period

= Counter;

End;

Cord = linearRegValue(close,Period,0);

iO = Co.a - Q.618 * Cord * AvgTiueRange(52)/Average(close,5)2 ;)

If LD < LD[l] then LD = LD[l];

If Cord < LD then LD = Cord;

ii i-."rn"gV"fue(close,26,0)>O then Roar = IntPortion (5200 * linearRegslope(close,26)/

LinearRegValue(c1ose,26)e,0ls)e R oar = 0;

iin";t t= 30 and IntPortion (LinearRegValue(roar,5,0)>)= 30 then Roar = IntPortion

(LinearRegValue(roar,5), )0;

Cutoff = 20;

Enter = 30;

if Roar < Cutoff then Roar = 0;

if Roar < Enter and Roar[l] = 0 then Roar = 0;

if Roarll] = 0 and summation(volume * MedianPrice'l3) < 120000 then Roar = 0 ;

iin.-ifj > 0 and summationivolume * MedianPrice,l3) < 100000 then Roar = 0 ;

if Cord = LD then Roar=O;

plotl (Roar,"Roar", darkgray,b lack' I );

plot2 (Cutoff, "Cutoff' , black , black , I );

 

This is supposed to work on Tradestation, Which I don't have.

 

I do have a bull charts version but have not messed with it much

 

if you want to know more just google Alan Hull or alan hull.com.au

 

Thanks for the code, I am on the task to code it for Metatrader4 but this part ...

Cord = linearRegValue

 

This uses another indicator? Linear Regression? Anyone has any suggestions what is the code of that indicator?

 

Thank you!

Share this post


Link to post
Share on other sites
I think it might be a useful tool if anyone can code it. There are so many markets, there will be at least one bullish to trade it :) As long as it can work I don't see a problem ... :) thanks!

 

As long as you are able to find the bullish markets, it may give you what you need. The question is - can you find the bullish markets?

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Topics

  • Posts

    • I guess US has fund managers and investment banking institutions looking after the portfolios on behalf of their clients.
    • There are many resources related to forex trading available on forums like babypips and forexfactory etc.
    • Candle stick pattern is one of the easiest charting patterns available to learn and make money. However, new traders never learn about the skills needed for earning money but they rush for making money and eventually lose their money.
    • Nothing wrong with being a ‘progressive’. Nothing wrong with being a ‘conservative’.  Very generally, ‘conservatives’ have preponderance of the here and now neurotransmitters, prefer empirical references, the rule of law, and value individual agency (It has been said that conservatives love humans and progressives love humanity) . Very generally, ‘progressives’ are dopaginaric - driven by passion for a better possible future, prefer references to others  (Example Karmela won’t answer questions with facts.  She cites the opinion of 18 ‘experts’), have a penchant for rule by man/mobs not by law , and value ‘societal' agency.  However, excesses of either tendency indicates mental illness, collective malaise, and has consequences.  When either camp is systematically captured by control seekers and/or, situationally by mobs, the whole is lessened. A key sign that is occurring is when one side no longer allows disagreement.  Progressives have  currently gone crazy in those excesses and are no longer allowing anything but unithought... examples - You can still be a vocal pro choice republican.  Try being a vocal pro life democrat. For snicks just try it.  You’ll get cancelled.  Bust a myth about blacks in America, true up the real  history of Republicans ending slavery and what has happened since, how the democrats are the party of the KKK, how Obama did not a fkn thang for blacks in general, be a black republican, etc.    You will get canceled in a heartbeat. Step up and question the social agendas of federally subsidized schools at a board meeting... get treated like shit and also get an immediate case number with the FBI ... Question the requirements to watch and lickkiss the 'rainbows' and also make sure your kids show up for it, not to mention fund transitions out of your pocket and see what you get ‘labeled’ Question mainstream media bias - even just to mention that biased, agenda driven narrative is different from truth in reporting - and see what happens to your voice... Excesses have consequences... imbalances have consequences... just sayin’
    • SBUX Starbucks stock, watch for a top of range breakout above 99.81 at https://stockconsultant.com/?SBUX
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.